The Economic Growth and Regulatory Paperwork Reduction Act of
1996, enacted on September 30, 1996, encourages lenders to
voluntarily conduct "self-tests" of their lending transactions
to determine their level of compliance with the Equal Credit
Opportunity Act (ECOA) and the Fair Housing Act (FHA).

The Board of Governors of the Federal Reserve System and the
Department of Housing and Urban Development (HUD) recently
issued for public comment the attached proposed revisions to
the ECOA and the FHA concerning self-testing. Comments on the
Federal Reserve System's proposed revisions to the ECOA were
due on January 31, 1997. The comment period for HUD's
proposed revisions to the FHA will end on March 3, 1997.

The rules proposed by HUD and the Federal Reserve System are
substantially similar. Under the proposed rules, when a
lender voluntarily conducts or authorizes a third party to
conduct a test of its lending transactions, the test results
or reports are considered privileged only if the lender has
taken or is taking appropriate corrective action to fully
remedy both the cause and the effect of any possible
violations.

The FDIC encourages all interested parties to review the
attached proposals. Written comments on HUD's proposed rule
should be mailed to the Rules Docket Clerk, Office of General
Counsel, Room 10278, Department of Housing and Urban
Development, 451 Seventh Street, S.W., Washington, D.C.
20410.